Economic Performance Measure
An Economic Performance Measure is an economic measure that quantifies economic activity and economic outcomes within economic systems (used to evaluate economic performance and inform economic decision-making processes).
- AKA: Econometric Measure, Economic Performance Metric.
- Context:
- It can typically assess Economic Efficiency through resource utilization measurement for economic policy evaluation.
- It can typically track Economic Output across time periods to evaluate economic growth patterns.
- It can typically benchmark Economic Performance against historical performance or comparable economy performance.
- It can typically quantify Economic Productivity through input-output ratio analysis.
- It can typically evaluate Economic Stability using volatility measurement and trend analysis.
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- It can often enable Economic Comparison across national economy or regional economy boundaries.
- It can often facilitate Economic Progress Assessment through longitudinal measurement.
- It can often support Economic Planning through performance gap identification.
- It can often inform Policy Adjustment through economic performance feedback.
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- It can range from being a Macroeconomic Economic Performance Measure to being a Microeconomic Economic Performance Measure to being an Economic Agent Economic Performance Measure, depending on its economic analysis scope.
- It can range from being a Short-term Economic Performance Measure to being a Long-term Economic Performance Measure, depending on its measurement timeframe.
- It can range from being a Narrow Economic Performance Measure to being a Comprehensive Economic Performance Measure, depending on its economic factor coverage.
- It can range from being a Nominal Economic Performance Measure to being a Real Economic Performance Measure, depending on its inflation adjustment methodology.
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- It can produce an Economic Value Estimate for economic planning purposes.
- It can be associated to an Economic Performance Change Measure for economic trend analysis.
- It can integrate with Economic Forecasting Model for future performance projection.
- It can connect to Economic Policy Framework for evidence-based governance.
- It can support International Economic Comparison through standardized measurement methodology.
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- Examples:
- Macroeconomic Economic Performance Measures, such as:
- Output Macroeconomic Economic Performance Measures, such as:
- Economy Output Measure, such as GDP for measuring total economic production.
- Gross National Product for measuring citizen-owned production.
- Net National Product for measuring depreciation-adjusted production.
- Growth Macroeconomic Economic Performance Measures, such as:
- GDP Growth Rate for tracking economic expansion pace.
- Per Capita GDP Growth for measuring individual economic improvement.
- Productivity Macroeconomic Economic Performance Measures, such as:
- Productivity Measure for assessing output efficiency.
- Total Factor Productivity for evaluating technological advancement impact.
- Stability Macroeconomic Economic Performance Measures, such as:
- Inflation Rate for measuring price stability.
- Unemployment Rate for assessing labor market health.
- Economic Volatility Index for tracking economic fluctuation magnitude.
- Output Macroeconomic Economic Performance Measures, such as:
- Market Economic Performance Measures, such as:
- Labor Market Measure for evaluating workforce utilization.
- Capital Market Measure for assessing investment efficiency.
- Product Market Measure for measuring consumption patterns.
- Demand-Supply Economic Performance Measures, such as:
- Demand Measure for tracking consumption willingness.
- Supply Measure for measuring production capacity.
- Market Equilibrium Measure for assessing economic balance.
- Distribution Economic Performance Measures, such as:
- Wealth Measure for tracking asset accumulation.
- Income Measure for measuring earning distribution.
- Economic Inequality Index for assessing resource distribution fairness.
- Sectoral Economic Performance Measures, such as:
- Industrial Sector Performance Measure for tracking manufacturing productivity.
- Service Sector Performance Measure for measuring service delivery efficiency.
- Agricultural Sector Performance Measure for assessing food production capacity.
- Structural Economic Performance Measures, such as:
- Economic Diversity Index for measuring economy sector balance.
- Economic Complexity Index for assessing production sophistication.
- Economic Resilience Measure for evaluating shock absorption capacity.
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- Macroeconomic Economic Performance Measures, such as:
- Counter-Examples:
- Moral Value Measure, which evaluates ethical standards rather than economic performance.
- Cultural Performance Measure, which assesses cultural achievements rather than economic efficiency.
- Political Performance Measure, which evaluates governance effectiveness rather than economic productivity.
- Social Performance Measure, which assesses social conditions rather than economic output.
- Environmental Performance Measure, which evaluates ecological impact rather than economic result.
- See: GDP, Economic Indicator, System Performance Measure, Economic Growth Measure, Productivity Indicator, Economic Development Index, Economic Efficiency Measure, National Accounting System, Economic Value Estimate.
References
2014
- (Wikipedia, 2014) ⇒ http://en.wikipedia.org/wiki/Measurement_in_economics Retrieved:2014-2-9.
- The measures used in economics are physical measures, nominal price value measures and fixed price value measures. These measures differ from one another by the variables they measure and by the variables excluded from measurements. The measurable variables in economics are quantity, quality and distribution. By excluding variables from measurement makes it possible to better focus the measurement on a given variable, yet, this means a more narrow approach. The table was compiled to compare the basic types of measurement. The first column presents the measure types, the second the variables being measured, and the third column gives the variables excluded from measurement.
- (Piketty, 2014) ⇒ Thomas Piketty. (2014). “Capital in the Twenty-First Century." Harvard University Press. ISBN:9780674369559
- QUOTE: … For example, income, capital, the economic growth rate, and the rate of return on capital are abstract concepts — theoretical constructs rather than mathematical certainties. Yet I will show that these concepts allow us to analyze historical reality in interesting ways, provided that we remain clear-eyed and critical about the limited precision with which we can measure these things. I will also use a few equations, such as [math]\displaystyle{ a = r × ß }[/math] (which says that the share of capital in national income is equal to the product of the return on capital and the capital/income ratio), or [math]\displaystyle{ \beta = s / g }[/math] (which says that the capital/income ratio is equal in the long run to the savings rate divided by the growth rate).
2013
- (Wikipedia, 2013) ⇒ http://en.wikipedia.org/wiki/Value_(economics) Retrieved:2013-12-27.
- Economic value is a measure of the benefit that an economic actor can gain from either a good or service. It is generally measured relative to units of currency, and the interpretation is therefore "what is the maximum amount of money a specific actor is willing and able to pay for the good or service"?
Note that economic value is not the same as market price. If a consumer is willing to buy a good, it implies that the customer places a higher value on the good than the market price. The difference between the value to the consumer and the market price is called "consumer surplus". It is easy to see situations where the actual value is considerably larger than the market price: purchase of drinking water is one example.
The economic value of a good or service has puzzled economists since the beginning of the discipline. First, economists tried to estimate the value of a good to an individual alone, and extend that definition to goods which can be exchanged. From this analysis came the concepts value in use and value in exchange.
Value is linked to price through the mechanism of exchange. When an economist observes an exchange, two important value functions are revealed: those of the buyer and seller. Just as the buyer reveals what he is willing to pay for a certain amount of a good, so too does the seller reveal what it costs him to give up the good.
Additional information about market value is obtained by the rate at which transactions occur, telling observers the extent to which the purchase of the good has value over time.
Said another way, value is how much a desired object or condition is worth relative to other objects or conditions. Economic values are expressed as "how much" of one desirable condition or commodity will, or would be given up in exchange for some other desired condition or commodity. Among the competing schools of economic theory there are differing metrics for value assessment and the metrics are the subject of a “Theory of Value." Value theories are a large part of the differences and disagreements between the various schools of economic theory.
- Economic value is a measure of the benefit that an economic actor can gain from either a good or service. It is generally measured relative to units of currency, and the interpretation is therefore "what is the maximum amount of money a specific actor is willing and able to pay for the good or service"?
2000
- (Harrison & Huntington, 2000) ⇒ Lawrence E. Harrison, and Samuel P. Huntington (editors). (2000). “Culture Matters: How Values Shape Human Progress." Basic Books. ISBN:9780465031764
- QUOTE: As the credibility of traditional explanations - colonialism, dependency, racism - declines, many now believe that the principal reason why some countries and ethnic groups are better off than others lies in the cultural values that powerfully shape nations and people's political, economic, and social performance.